The Australian Competition and Consumer Commission (ACCC) has launched separate Federal Court proceedings against home meal delivery services HelloFresh and Youfoodz, alleging they misled consumers about how to cancel subscriptions and avoid being charged for their first order.

Both companies are owned by German parent HelloFresh SE, with HelloFresh offering weekly meal kits and Youfoodz providing ready‑made weekly meals through websites and smartphone apps.

Alleged “subscription traps”

The ACCC alleges that HelloFresh and Youfoodz breached the Australian Consumer Law by advertising that new customers could easily cancel subscriptions through their online account settings before a specified cut‑off time.

In reality, the regulator claims, many consumers who cancelled online before that deadline were still charged for and received their first delivery.

“Despite being able to sign up easily through the websites and apps, consumers were only able to cancel the first delivery if they spoke with a customer service representative,” the ACCC said.

ACCC Commissioner Luke Woodward said the cases were brought because the conduct involved “a suite of confusing and unclear subscription practices” that breached Australia’s consumer laws.

“Despite what HelloFresh and Youfoodz represented to new Australian subscribers, tens of thousands of consumers were charged for their first order, even though they cancelled their subscription before the cut‑off date,” Mr Woodward said.

Tens of thousands charged despite cancelling

The ACCC alleges that HelloFresh’s conduct occurred between 1 January 2023 and 14 March 2025, while Youfoodz’s alleged conduct ran from 1 October 2022 to 22 November 2024.

During those periods, 62,061 HelloFresh customers and 39,408 Youfoodz customers were charged a fee despite cancelling their subscription before the cut‑off time for the first order.

The ACCC began its investigation in October 2024 after receiving a large number of consumer complaints about the companies’ subscription and cancellation processes.

Specific claims against HelloFresh

The ACCC alleges that HelloFresh required consumers to provide payment details simply to view and select meals from the full menu.

During the sign‑up process, the company allegedly represented that customers would not be charged unless they actively selected meals. However, the ACCC claims that when consumers clicked the button to move to the meal selection screens, they were automatically entered into an ongoing subscription and charged for the first delivery.

Many HelloFresh customers were reportedly unaware they had been subscribed until they received a delivery or a payment notification.

In one example cited by the ACCC, a consumer entered payment details on the HelloFresh website to view the menu but decided not to proceed. They later received a PayPal notification that they had been charged and found it difficult to contact HelloFresh about the payment.

Specific claims against Youfoodz

The ACCC alleges that Youfoodz told consumers who had taken steps to cancel their subscription in their online account settings that the first delivery was cancelled and they would not be charged.

However, the regulator claims the first delivery could not actually be cancelled through that method, and customers were still charged.

In another example, a consumer signed up for a Youfoodz subscription and cancelled online within minutes. They later received a text stating their delivery would arrive the next day and that they had been charged. After multiple calls, they were eventually offered only a 50 per cent refund.

What the ACCC is seeking

The ACCC is seeking a range of orders from the Federal Court, including:

• Compensation orders for affected consumers
• Civil penalties
• Declarations that the companies breached the Australian Consumer Law
• Publication orders (requiring the companies to publish corrective notices)
• Implementation of a compliance program
• Costs

Mr Woodward stressed that businesses must clearly communicate when consumers are signing up for a subscription and how they can cancel and avoid being charged.

“Businesses using confusing and complicated subscription cancellation policies is a matter of significant public concern and, where there is evidence of breaches of the Australian Consumer Law and consumer harm, the ACCC will take enforcement action when appropriate,” he said.

Festive season warning

The ACCC also urged consumers to carefully review contract terms before paying for any subscriptions, particularly when purchasing gift subscriptions during the festive season.

Consumer and fair trading issues in the digital economy are among the ACCC’s key enforcement priorities for 2025–26.